Evaluation Report: Safety Retrofits and Environmental Upgrades in the Bangladesh Ready-Made Garment Sector, Bangladesh

This evaluation focuses on the technical cooperation measure titled "Support of Safety Retrofits and Environmental Upgrades in the Bangladeshi Ready-Made Garment (RMG) Sector," referred to as 'the project.' Implemented as part of the GIZ Development Cooperation programme, this initiative, financed by BMZ, aimed to enhance social and environmental standards in the Bangladeshi RMG sector. Operating from July 2017 to January 2021, the project targeted the Dhaka region, the hub of textile industries in Bangladesh.

The RMG sector, pivotal to Bangladesh's export and economic growth, faced significant challenges following tragic incidents such as the collapse of the Rana Plaza building in 2013, which underscored the pressing need for improved workplace safety and environmental sustainability. Despite the availability of financial support, both textile factories and financial institutions exhibited reluctance and limited capacity in investing in social and environmental (SE) measures. This lack of engagement stemmed from skepticism, inadequate skills, and insufficient expertise among stakeholders.

The evaluation identifies the fundamental issue as the underutilization of capacity development and information services by Bangladeshi financial institutions and textile factories regarding SE investments. Consequently, SE investment opportunities were not effectively promoted or demanded, leading to missed chances for upgrading factories and providing safer and greener working conditions.